If There Is an Unanticipated Increase in Aggregate Demand,which of the Following

question 28

Multiple Choice

If there is an unanticipated increase in aggregate demand,which of the following is most likely to occur?

• A)an increase in the price level (inflation)
• B)an increase in the rate of unemployment
• C)a reduction in the growth rate of real GDP
• D)a decrease in LRAS to restore full employment

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Definitions:

Rate of Total Return

A measure of the gain or loss on an investment over a specified period, including interest, capital gains, dividends, and distributions realized over the period.

Rental Income

Income received from leasing out property or other real estate assets.

Property Taxes

Taxes paid by property owners based on the assessed value of their real estate, usually levied by local governments.

Total Return

A measure of the overall return on an investment, including both capital gains and income (like dividends or interest), over a specific period.